v3.26.3
Revenue Recognition
 9 Months Ended
Sep. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Contract Balances
Our contract assets relate to our trademark licensing revenue stream, which arrangements are typically long-term and non-cancelable. Contract assets are reclassified to accounts receivable when the right to bill becomes unconditional. Our contract liabilities consist of billings or payments received in advance of revenue recognition and are recognized as revenue when transfer of control to customers has occurred. Contract assets and contract liabilities are netted on a contract-by-contract basis. Contract liabilities are classified as deferred revenue in the condensed consolidated balance sheets as of September 30, 2026 and December 31, 2025.
The following table summarizes our contract assets and certain contract liabilities (in thousands):
September 30,
2026		December 31,
2025		December 31,
2024
Accounts receivable$10,217 $4,120 $7,271 
Contract Balances:
Contract assets, current portion$1,693 $1,733 $1,531 
Contract assets, net of current portion6,850 7,467 7,848 
Contract liabilities, current portion(8,974)(11,015)(9,693)
Contract liabilities, net of current portion(12,405)(14,252)(5,762)
Contract liabilities, net$(12,836)$(16,067)$(6,076)
The following tables provide a roll-forward of our contract liabilities, net (in thousands):
Contract Liabilities, Net
Balance at December 31, 2025$(16,067)
Revenues recognized that were included in gross contract liabilities at December 31, 2025
35,657 
Contract assets reclassified to accounts receivable in the nine months ended September 30, 2026
(31,481)
Cash received in advance and remained in net contract liabilities at September 30, 2026
(772)
Contract terminations in the nine months ended September 30, 2026
(173)
Balance at September 30, 2026$(12,836)
Contract Liabilities, Net
Balance at December 31, 2024$(6,076)
Revenues recognized that were included in gross contract liabilities at December 31, 202421,332 
Contract assets reclassified to accounts receivable in the nine months ended September 30, 2025
(13,195)
Cash received in advance and remained in net contract liabilities at September 30, 2025(15,848)
Contract terminations in the nine months ended September 30, 2025215 
Balance at September 30, 2025$(13,572)
Future Performance Obligations
As of September 30, 2026, unrecognized revenue attributable to unsatisfied and partially unsatisfied performance obligations under our long-term contracts was $326.0 million, of which $324.0 million related to trademark licensing, including minimum guaranteed royalties from licensed digital operations per the LMA, $1.6 million pertained to December 31, 2024 deferred revenue balances from our legacy digital subscriptions and products operations and $0.4 million related to direct-to-consumer products.
Unrecognized revenue of the trademark licensing revenue stream is expected to be recognized over the next 14 years, of which 49% is expected to be recognized in the first five years. Such unrecognized revenue does not include variable consideration determined based on the customer’s subsequent sale or usage. Unrecognized revenue of our prior digital subscriptions and products operations, which pertains to related deferred revenue balances as of December 31, 2024, will be recognized over the next four years, of which 62% is expected to be recognized in the first year.
Disaggregation of Revenue
The following table disaggregates revenue by type (in thousands):
Three Months Ended September 30, 2026Nine Months Ended September 30, 2026
Direct-to-ConsumerLicensingCorporateAll OtherTotalDirect-to-ConsumerLicensingCorporateAll OtherTotal
Consumer products$18,368 $— $131 $— $18,499 $56,702 $— $375 $— $57,077 
Trademark licensing— 12,635 — — 12,635 — 34,736 — — 34,736 
Digital subscriptions and products— — 73 253 326 — — 263 827 1,090 
Events and sponsorships— — 7 — 7 — — 18 — 18 
Total net revenue from contracts with customers 18,368 12,635 211 253 31,467 56,702 34,736 656 827 92,921 
Collaborative arrangement revenue — — 247 — 247 — — 247 — 247 
Total net revenues $18,368 $12,635 $458 $253 $31,714 $56,702 $34,736 $903 $827 $93,168 
Three Months Ended September 30, 2025Nine Months Ended September 30, 2025
Direct-to-ConsumerLicensing
Corporate
All Other
TotalDirect-to-ConsumerLicensing
Corporate
All Other
Total
Consumer products$16,388 $— $— $— $16,388 $49,212 $— $43 $— $49,255 
Trademark licensing— 11,995 — — 11,995 — 34,378 — — 34,378 
Digital subscriptions and products— — 93 513 606 — — 212 1,947 2,159 
Events and sponsorships — — 5 — 5 — — 225 — 225 
Total net revenues$16,388 $11,995 $98 $513 $28,994 $49,212 $34,378 $480 $1,947 $86,017 
The following table disaggregates revenue by point in time versus over time (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Point in time (1)
$18,753 $16,393 $57,342 $49,542 
Over time12,961 12,601 35,826 36,475 
   Total net revenues$31,714 $28,994 $93,168 $86,017 
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(1) Includes $0.2 million of our share of net profit under a collaborative arrangement related to a paid voting initiative accounted for under ASC 808, Collaborative Arrangements, which is not revenue from contracts with customers.